Xcycle raises funds for flagship recycling facility in the Port of Rotterdam

Xycle, a Rotterdam-based startup committed to advancing a circular economy for plastic through chemical recycling technology, announced today it has successfully secured financing for the construction of its first commercial-scale plant.

The funds secured are a combination of equity investment from a consortium of investors; Dow, ING, Invest-NL (partly covered by InvestEU) and Vopak, and senior debt from Polestar Capital.

Xycle will use this funding to support construction of a flagship recycling facility, strategically located in the Port of Rotterdam as a major international gateway to Europe.

Arnd Thomas, CEO of Xycle said “Our innovative chemical recycling technology offers a credible and scalable route to divert plastic waste from incineration, landfill or our natural environment. Securing funding for the construction of our facility in the Port of Rotterdam marks an important step in developing and expanding our unique pyrolysis-based technology, which has been shown to deliver best-in-class pyrolysis yield for cracker feedstock.

“We are excited to work hand in hand with our investment partners – leveraging the strength of their expertise in their respective sectors – to fulfil the promise of our technology and accelerate a circular economy for plastics.”

Founded in 2020, Xycle transforms hard-to-recycle plastic waste—currently destined for landfill or incineration—into valuable resources, contributing to a circular economy for plastics.

Xycle’s chemical recycling technology uses low-temperature pyrolysis to efficiently break down difficult-to-recycle plastic waste into pyrolysis oil, increasing the liquid fraction available for use as cracker feedstock in new plastic production. This technology enables plastic waste that would otherwise go to landfill or incineration to be reused in high-value applications, including food-grade packaging, medical and automotive components.

Walter Moone, President, Vopak Netherlands: “We’re very pleased with this milestone for Xycle and proud that Vopak is contributing to this. Developing new infrastructure solutions and setting up new supply chains in partnership is essential in the energy transition.”

Dow, one of the investment partners and a global leader in materials science, will be an off-taker for the circular feedstock produced and will use it to manufacture virgin-quality circular plastics which are in high demand by global brands.

Stephanie Kalil, Commercial Vice President, EMEA, Packaging & Specialty Plastics, Dow: “We are thrilled to announce this strategic investment in Xycle which marks another pivotal step towards our goal to transform the waste. The performance and efficiency of Xycle’s technology strongly complements our increasingly diverse global portfolio of recycling solutions. We believe that the robust financial backing and credibility of our investment partners demonstrates the strength of the opportunity at hand to scale advanced recycling technologies; to address the plastic waste challenge and meet growing customer demand for circular products.”

The first commercial-scale plant of Xycle will be able to process 21k metric tons of plastic waste annually. Located in the Port of Rotterdam, this chemical recycling facility will have strategic access to the transportation of plastic waste into the plant and distribution of pyrolysis oil from the plant to the off-take partners. The site is expected to be fully operational by Q4 2026.

In the future, Xycle plans to develop more chemical recycling facilities globally, utilising larger reactor sizes to increase single plant capacity to 100k metric tons annually.

Lars Groenveld, Impact Investor, Invest-NL: “At Invest-NL, we are proud to support Xycle in its mission to scale its plastic recycling technology and accelerate the transition to a circular economy. Xycle offers a clear path towards realising commercial scale operations in the near future. This investment reflects our ambition to enabling sustainable innovations and empowering entrepreneurs to address the major societal challenges of our time.”

Daan van Kassel, Fund Director, Polestar Capital Circular Debt Fund (PCDF): “Xycle is one of the most promising projects in the chemical recycling of plastics. With its very efficient pyrolysis technology, Xycle is able to process a wide variety of mixed waste plastic and convert them in recycled feedstock to produce virgin-grade plastic again. PCDF is proud to support Xycle in the funding for their plant in Rotterdam Europoort, and we are confident that the company will make a large positive environmental impact in the years to come.”